The MOU underscores the commitment of the two Exchanges to work together to enable information sharing and market building in areas of common interest. The two Exchanges plan to assist one another in marketing and educational areas such as joint sessions on new products and services. NCDEX and TGE will also share information on changes to existing contract specifications, trading methods and new products.
NCDEX Chief Business Officer, Narendra Gupta said, “This association with TGE is important for us as NCDEX has a leading edge in trading in agricultural commodities. We would like to leverage the expertise of TGE to develop domestic commodity markets particularly in the emerging Asian context. All commodities that TGE deals in are of strategic importance to India. We have no doubt that this association will beneficially impact the agricultural sector participants in India.”
Mr. Masanori Hayashi, Senior Executive Vice President, TGE said, “NCDEX is a rapidly growing new Exchange which will expectedly unlock the full economic potential of the subcontinent of India. We believe that it will become India’s foremost market in the near future. Together we will be able to enhance our markets and further augment foreign participation. This MOU is another step for TGE’s plans in strengthening our Asian Exchange network.”
The Tokyo Grain Exchange (TGE) is a leading agricultural commodity derivatives exchange and a center of agricultural commodity futures trading in the Asia region. Among the variety of contracts TGE lists, Arabica and robusta coffee, raw sugar, soybeans and corn.
NCDEX currently facilitates trading in 31 commodities (2 precious metals, 1 base metal and 28 agricultural products) and is continuously seeking to expand its range of commodities for trading. The average daily one sided turnover of all the commodities presently being traded on NCDEX is around Rs 2000 cr with the peak daily traded volume being Rs. 3100 cr being registered on March 8, 2005.
